UK Energy Price Cap to Rise by £111, Sparking Concern for Vulnerable Households

February 25, 2025
UK Energy Price Cap to Rise by £111, Sparking Concern for Vulnerable Households
  • Millions of households across England, Wales, and Scotland will be impacted by this price cap, which is reviewed every three months.

  • Citizens Advice reported a 20% increase in requests for help with energy bills in England and Wales last year, highlighting the growing financial distress among consumers.

  • Ofgem has announced that the energy price cap will rise by an average of £111 per year starting in April 2025, bringing the average household bill to £1,849.

  • Richard Neudegg from Uswitch.com warned that households not on fixed tariffs will face increased bills and encouraged consumers to explore available deals.

  • This marks the third increase in a quarter, undermining government efforts to reduce energy costs for consumers.

  • Simon Francis of the End Fuel Poverty Coalition emphasized the urgent need for support for vulnerable households and investment in energy efficiency amid rising costs.

  • The UK Government is actively pursuing wind and solar energy initiatives to reduce reliance on volatile global gas prices, which could lead to more affordable energy in the future.

  • Experts, including Craig Lowrey from Cornwall Insight, noted that rising bills underscore the necessity to accelerate the transition to renewable energy.

  • National Energy Action's Chief Executive, Adam Scorer, expressed concern for vulnerable households facing high energy costs and called for government interventions, including targeted support.

  • In a letter to Ofgem, Ed Miliband emphasized the risks of the UK's dependence on foreign-controlled fossil fuel markets, urging for better consumer protections.

  • Martin Lewis, founder of MoneySavingExpert.com, advised households to switch from standard variable tariffs to fixed tariffs immediately to mitigate the impact of the upcoming price hike.

  • The anticipated increase in energy bills may add pressure to the government, which has already faced criticism for removing winter fuel allowances for pensioners.

Summary based on 17 sources


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